How Does The Federal Solar Tax Credit Work?
The short answer: The Federal Solar ITC (Investment Tax Credit) provides a 26% tax credit for solar systems installed in 2020-2022. The long answer: Here are 5 important things to know about the Federal Solar ITC. 1: It's a tax credit, not a check. * Let's say your rooftop solar cost is $40,000. Then let's do the math: 26% of $40,000 = $10,400. * This means you can reduce your federal income taxes that are due by $10,400. * You will sadly not receive a big 'ol check from the government